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A contract cleaning firm estimates that it will take 2250 actual cleaning hours to clean an office block unavoidable interruptions and lost time are estimated to take 10 percent of operative time if the wage rate is dollar 24 per hour what is the budgeted labor cost
Assume that the company adopts eoq of 3500 barrels as it’s order quantity and that it now takes two week for an order to be delivered the demand
Is 36750
RequiredQuestion How frequently will the company place an order
2 how much inventory will it have on hand when the order is placedI do not know why you have asked your first question again because I have already answered it.
Your second question is nothing to do with labour. In future please start a new thread when you are asking a question on a different topic.
If the order 3,500 barrels each time, then they will need to place 36750/3500 = 10.5 orders a year. If there are 52 weeks in a year (although in exam questions you are often told to assume that there are 50 weeks in a year) then they will place an order every 52/10.5 = 4.95 weeks.
If it takes 2 weeks for an order to arrive then they need to place an order when they have enough units left to last 2 weeks. So they need to place an order when they have 2/52 x 36750 = 1413 barrels left.
Have you watched my free lectures on this, because it is all explained in the lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
(Also, why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from BPP. It is full of exam standard questions for practice and has answers and explanations.)
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